Question
1A) A stocks current price is $150 and its price for delivery in one year under a forward contract is $165. What is the implied
1A) A stocks current price is $150 and its price for delivery in one year under a forward contract is $165. What is the implied dividend of this stock? Assume a riskless rate of 5%.
1B) A stock has a beta of 2.5, and the return on the market is expected to be 12% and the risk-free rate is 7%. What is the total expected return on the stock under the CAPM?
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
